DA 2025: How much will the salary and pension increase in 2025? Know the latest update!

Some exciting news is in store for central government employees and pensioners as we enter 2025. There is a good chance that a hike in their dearness allowance (DA) will be announced soon, and everyone is eagerly waiting for it. Let's find out how DA is calculated and when the official announcement might be made.

So, how is DA detected?

As per the 7th Pay Commission, DA is based on the AICPI (All India Consumer Price Index). This round of hikes will depend on the AICPI data from July to December 2024. As of October 2024, it looks like DA could increase by 3% in January 2025, as the AICPI was at 144.5. However, we are still waiting for the data for November and December. If the figure comes to around 145 in those months, we could see DA increase by 56 percent by January 2025.

How will the employees benefit from this?

The decision to increase the dearness allowance (DA) for central employees mainly depends on the All India Consumer Price Index (AICPI). Recent data suggests that the government may increase the DA from 53 percent to 56 percent in the upcoming year. This 3 percent increase in dearness allowance can significantly increase the monthly income of central employees. If the DA is actually increased by 3 percent, there will be a significant change in the financial condition of government employees and pensioners.

When can the DA hike be announced?

As per the 7th Pay Commission, DA is revised biennially with adjustments in January and July. This revision is determined by the average AICPI index. The upcoming DA revision for January 2025 will be based on AICPI data collected from July to December 2024. The official announcement regarding the hike in dearness allowance for central employees is usually made in March. The government may reveal it before Holi, giving a festive surprise to government employees and pensioners. However, the DA adjustment may be reflected in the salary of March or April.